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The Future…

You wake up early, and nothing feels right. You aren’t feeling body-sick: no headache, stomach ache, sniffles, or sneezes. Not a cough or runny nose in sight.

But you know something isn’t right.

The discomfort sits in your belly, or shoulders, or perhaps the back of your neck. A feeling that something has gone wrong and you need to fix it. A feeling that you have done something you shouldn’t have, and now you have to face the consequences.

As you start your day you feel like there is something you need to remember. Something you to need to be doing, but have been avoiding. You can’t put your finger on it, but it haunts you throughout the day, this feeling of discomfort and that all is not right in your world.

Then, as you go through your mail, this strange malaise comes crashing into focus. Your credit card bill is WAY bigger than you thought it would be.

Sure you spent a lot of money over Christmas and New Years: presents, dinners, drinks, gas, coffees, and even more presents, but THIS much money?

Now you have to figure out how to pay it back before all of the interest starts to accumulate and makes the past holiday cost even more.

You, have a money hangover…

If only you had a way-back-time-machine.

The Present

BAM. Like magic, here we are back in 2015, and you have a chance to learn from your 2016-money-hangover. You have a chance to do things differently this Christmas. Let’s start by exploring the idea of:

The Money Hangover

Of the different possible causes of having a money hangover, your future-self is experiencing the worst: spending money you don’t have and going into debt.

Going into debt results in a money hangover for a number of reasons:

You are thinking about the past: that debt on your credit card is money you owe for past experiences. Repaying debt for past experiences you couldn’t afford means less money to spend now, resulting in less enjoyment of today and tomorrow. This weighs heavily on your mind, body, and health.

Your time and actions are limited: When you have debts to repay the way you view your life changes. More of your time goes to making money for the debt first and other opportunities pass by. Your actions focus on making sure you get out of debt, and you end up acting in response to your debt instead of making decisions to move towards your goals and vision.

Your creativity is limited: It is much easier to be creative when you have free time and money to work with. Without the pressure of needing money right now, you have the ability to think more about your ideas and how to bring those ideas to life. When you owe money your creativity is bent towards thinking about how you will pay people back instead of what you want to do with your future.

You are reacting to your money, not controlling it: You have to pay back the debt you owe which means the debt is running the show, not you. Reacting to your money situation causes stress and a feeling of losing control, which makes decision making for the present and future very difficult. You always need to take care of the debt first, instead of making the decisions you know are best.

Debt and a money hangover sucks because it takes away so many of the Choices you could be making, and a lack of Choices in your life leads to stress, anxiety, exhaustion, and any other number of horrible feelings that you want to avoid.

So, how can you avoid all these nasty feelings?

Pay Cash For Christmas

Learn more about how you can get help paying cash for Christmas and start 2016 free from holiday debt.

“I was thinking about something you said awhile ago, about how you save for your vacations.”

I was getting ready to do some writing at the local coffee shop and one of our friends was sitting with me, waiting for their latte. “Yeah, we have been doing it for a few years now, it makes a huge difference for us”

“We finally did it, well not exactly, we didn’t have it all saved up, but most of it. Going on a paid vacation is a LOT of fun, I never would have imagined it would make such a big difference.”

I smiled, and nodded, I love hearing about people trying out new money money management tactics, especially when they work. “No credit card bill takes a lot of the stress off for sure. We save for Christmas the same way.”

“I’m not sure we’re there yet, but maybe…”

* * *

Saving ahead of time for retirement and your children’s education is something most people understand (even if they are not doing it yet). Saving ahead of time for vacations, toys (the child and grown up kind), Christmas, cars, and houses is a little more foreign. Those are the types of things that are “above” the usual costs, and you just put them on a credit card, get a loan, or a mortgage, and pay it off over time.

Similarly, when you start a business you go in knowing that there will be start up costs, ongoing costs, and growth costs. Not to mention the cost of loss income if you decide to quit your job and start your business full time. Not a problem though, like vacations, Christmas, and cars start up costs are a “good debt” to take on as they help you start and build your business. Right?

Translation: My seven year old son, Fionn (pronounced “Fin”, the silent “0” is just there to cause problems) wanted to buy a virtual monster for an iPad game with real money to the amount of $23, every single penny he had in his wallet. After school, I offered my son fifty cents to write a report on his In App Purchase experience and here is the result:

Whay not to do in app percheses

Fionn’s original copy

Thar a wayst of mony

Inles you relly whant it.

Think if you whant it or get something els

Save up

I got a Lengendary pack for $23. I got the Lengendry. But you need a Legendary habitat. I didn’t have one. But after scoohl I forgot it came with one.
Why it was worth it

It was worth it. I anialated the fight I was in.

Next time I whoud save my money. Because one is anof.

Fionn

I think Fionn’s reflections show some important budgeting and money saving lessons:[Read more…]